Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
- q% b: Z  K2 ^# B& ucompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
4 w7 A/ }9 @" N+ X3 B1 icrude prices improves. This implies also to good names such as Shell,
, V: _' A) W* `/ o4 N* W9 b  P7 ]EXXON, BG, BP, Cheveron ....xyz.. oils
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& z% L) a4 I% ~: R: D: C' }Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
) F3 j; H4 Y# d& O. p+ l3 I* Bof so much news. These reasons are:
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$ ^% Z3 P* u) m! u1 ]1. New oil has been found in Canada, Montana, North & South Dakota and
+ q0 B: E1 }9 N6 m, r. Din the ocean near Brazil. Each of these oil fields has more oil than
0 N2 ^5 {0 F. I3 O6 a+ P/ i. aArabia.
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, x! e- p% {+ b1 e2. New natural gas has been found in Pennsylvania and West Virginia.
: J. @* h3 g: Y$ O4 gThis is the largest find in North America.
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8 ]: u. B1 @. y1 v4 I/ A/ h3. New methods of injecting CO2 and surfactants into oil wells is
$ N9 D0 v5 u# J  }) I% c) n+ e: }being used to double their output.
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. n, r9 R2 y; |5 K4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
0 x' W, L( E4 Y# }4 u* U; Hpotential per acre in some cases is astounding. Many countries are
. O6 h; c! V: q+ sracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
* V2 m9 ?. [! e( vare now selling their used oil to bio-diesel producers. Every pork,
4 B! u8 ]$ _9 X) g; ocattle, turkey and chicken processing plant will soon sell their fat
. q8 H! p$ {3 D8 Y: cto bio-diesel producers. One pork processing plant in Oklahoma is
  c. a- |/ N- {0 N5 tproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
1 R* p4 C$ S: S# p. c; j( X+ iexpected to be built in the future. Much of the energy they produce
7 X' t- g7 H. awill replace oil.
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, A: ]8 ?% C& K5 t. F7 o7. Every company in any form of transportaion business is replacing
5 }4 q+ g) n- k6 m7 `7 g/ _; u: l) solder equipment such as trucks, airplanes, train engines, ships, etc.
" m: Y' ~2 N) v' b% e9 Q7 owith new more fuel efficient equipment. Airlines and railway companies
5 t" L5 H; R4 D5 ?" }are experiencing 20% to 25% better fuel econony with the new
2 C0 b' |, r7 Gequipment.

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7 Q) O- ~) J9 s7 fAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
- R# D) v0 q* k! M- f7 l: Ncapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
% V! u5 Z! p$ G$ xoil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
8 L5 \8 d- y6 U; F2 D7 E7 n9 pproduced as a byproduct is sold to oil companies for injection into
; M& @2 Z; Z) F/ n3 p" R: l# [oil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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2 r4 O# p4 q6 r2 T. H( mEach of the above by itself will not make a large difference in the
# w/ q, ]5 ]5 Q' U& R7 cprice of crude oil but the sum of all of them together is world
. f* X6 ^  `$ u7 H/ Ochanging. The important thing is that OPEC no longer has the ability
$ x) a7 {' O8 q' E' fto control oil prices.

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; R* E. S2 Z! K% h8 tWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
0 {* J" s8 @  y5 Z+ ~' i: Bvalue .....
$ ?  m* |/ ~. yIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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, {' k0 t9 N7 h/ LThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
! I; B* D9 J) {  x2009 ... FYI-Only